- Sales plunge
- Inventory falls again
- Prices up
- Homes on market longer
- Looking for lower-end homes
Historically low inventory levels are clearly putting a damper on sales in Sunnyvale. The demand is there, especially for lower-priced homes that are priced and presented properly. Buyers are aware that interest rates will be going up and are looking to buy before higher rates cut into the amount of home they can afford. Buyers are, however, more cautious than we saw for the better part of the past two years, evidenced by the fact that homes are staying on the market longer here. At the same time, however, price indicators rose across the board in January.
December’s median sales price was $1,366,000, about 1% higher than December’s $1,355,278 and 15% higher than a year ago. Homes sold for 018.6% of the average list price in January, the highest this ratio has been since August. It was 104% in December and 107% a year ago. The price per square foot in January was $859, up $13 from $846 in December and $94 higher than January 2015’s $765.
Closed sales were at their lowest level in two years. Only 19 sales closed in January, compared to 50 in December and 25 a year ago. In the past six years, only January 2014’s 17 sales were lower.
Inventory increased in January, after declining for three straight months. 40 homes were on the market at the end of January, compared to 36 at the end of December and 44 a year ago. Pending sales were cut by more than half, from 48 in December to 23 in January. 24 sales went pending in January 2015. The sharp drop in sales increased the supply relative to pending sales from 0.7 months at the end of December to 1.7 months at the end of January, which was on par with January 2015’s 1.8 months.
Homes have stayed on the market a little longer for the past two months; 30 days in January and 28 days in December. The average for the 12 months before that was 16 days.
Analysis by Price Range
The inventory of homes priced under $1 million was unchanged from December at 11. Pending sales plunged, from 15 in December to seven in January. That’s the fewest pending sales in this segment in over six years and reflects the low level of inventory, which is also at a six year (or longer) low. A 1.7 month supply was on the market at the end of January, more than double December’s 0.7 months. 27.5% of Sunnyvale’s inventory and 30% of its pending sales were priced under $1 million.
18 homes priced from $1 million to $1,499,999 were actively listed at the end of January, three more than at the end of December. Pending sales, however, were cut by nine, from 21 in December to 12 in January. That doubled supply relative to sales from 0.7 months at the end of December to 1.5 months at the end of January. This price range accounted for 45% of inventory and 52% of pending sales.
Homes priced at $1.5 million or more saw inventory rise and sales fall sharply. Only four sales went to contract in this segment in January, compared to 12 in December. January’s four sales were 17% of Sunnyvale’s total. Inventory increased from six in December to 11 in January, making up 28% of all inventory here. Supply increased from about two weeks at the end of December to 2.75 months at the end of January.